They've been staying at the Jackson Family home since Michael died on Thursday. There will be a hearing on August 3rd to determine whether or not she gets permanent custody. Katherine and her husband Joe also filed a separate petition yesterday, seeking control of Michael's estate. She was named a, quote, "temporary special administrator" of the estate, meaning that she'll have power to control at least some aspects of it for the time being.

In their petition, Katherine and Joe expressed concern about unnamed "third parties" that had control of certain aspects of Michael's estate, and could potentially mishandle them. --This matter will be discussed further at a hearing next Monday.

It's still not clear what will happen to Michael's estate. For starters, we don't actually know what it's worth, or in what form any assets are in.

On top of all this, nobody seems clear on whether or not Michael actually had a will. In their court petition, Michael's parents say that if there IS a will, they haven't seen it. If there is one, then we would assume that whatever it says, goes. (--Barring any legal challenges . . . and OF COURSE there would be several.) If there's NOT a will, then the estate would go to Michael's children . . . with someone appointed to oversee it for them until they turn 18.

(--Joe and Katherine Jackson say that their intent in wanting control of Michael's estate is to preserve and administer it for the kids.) (--By some estimates, Michael was as much as $400 million in debt when he died. Of course, now that he's gone, he can't drive himself further into the hole.)

Meanwhile, songwriting royalties will continue to come in, and tons of money can be made from the marketing of Michael's name and likeness. What that means is that if his estate is managed correctly, it's worth a fortune. Remember, Elvis Presley was pretty much broke when HE died. But his ex-wife Priscilla brought it back and made it a GOLDMIND on behalf of their daughter Lisa Marie . . . who's now set for life a zillion times over.

There are several reports indicating that a lawyer named John Branca DOES have a will signed by Michael Jackson . . . and he plans to file it within 30 days. (--It's not clear when this will was written . . . but we think it's the one we heard about yesterday, which Michael drew up in 2002, following the birth of his third child.)

As for custody, we still don't know the intentions of DEBBIE ROWE . . . the biological mother of the two eldest kids. Especially since that interview of hers that we heard about yesterday turned out to be BOGUS. In the interview, conducted by Britain's "News of the World" tabloid, Debbie supposedly said she had no interest in the kids, and that she was basically just a womb to them, and nothing more.

Well, Debbie's attorney, Marta Almli, now says, quote, "The interview did not occur. The article is a complete fabrication." --But Almli wouldn't speak about Debbie's actual intentions. She said, quote, "Ms. Rowe's only thoughts at this time have been regarding the devastating loss Michael's family has suffered. --"Ms. Rowe requests that Michael's family, and particularly the children, be spared such harmful, sensationalist speculation and that they be able to say goodbye to their loved one in peace."

The big question that everyone is pondering . . . in terms of custody . . . is whether or not Debbie will come after the kids IF it looks like she might benefit financially from having custody of them.

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JOE JACKSON HELD A PRESS CONFERENCE YESTERDAY . . . AND HYPED HIS NEW RECORD LABEL . . . ???

MICHAEL JACKSON'S father, JOE JACKSON, held a press conference yesterday to discuss various Michael-related issues. Oh, and also to pimp his new record label. Seriously . . . he tossed in a plug. He said, quote, "I was asked a question last night about the record company. Well, what I'm doin' is I established a record company . . . We have a lot of good artists we're fixing to come out."

Joe also talked about he and his wife KATHERINE wanting permanent custody of Michael's kids. He said, "We're the parents. This is where they belong. We're going to take care of them and give them the education they're supposed to have." Asked about DEBBIE ROWE, he said, quote, "Debbie Rowe has nothing to do with what we're doing."

Joe said the family isn't ready to announce memorial or funeral plans for Michael. He added, quote, "We're searching to see what happened to Michael. -"I want to see how this autopsy is coming out, the second autopsy. I'm expecting to hear about it real soon."

One thing he COULD say on that front, however, is that there are NO plans to bury Michael at the Neverland Ranch. He said, quote, "That's not true." --Joe also expressed sadness that Michael couldn't be there to see how much love he's been getting from around the world since his death. He said, quote, "The family and I are very proud to see all of you come out here and help us with this whole situation. I wish Michael could be here to see all this. "Michael was a superstar. He was loved in every country and the U.S. . . . but one thing Michael didn't know, he didn't know how strong this could be."